$173 million in signed checks found in Madoff's desk

NEW YORK 
Pressing the case that Bernard Madoff should have his $10 million bail revoked, federal prosecutors said in court documents yesterday that investigators found 100 signed checks worth $173 million in Madoff's desk on the day of his arrest.

The checks, which were to be distributed to family members, employees and friends, are another indication that Madoff, the financier accused of running a $50 billion Ponzi scheme, has tried to hide assets from his investors, prosecutors wrote in a brief to Magistrate Ronald Ellis of U.S. District Court in Manhattan.

On Monday, prosecutors asked Ellis to revoke Madoff's bail, contending that Madoff and his wife, Ruth, had violated his bail conditions by mailing more than $1 million in valuables to family members in late December. By mailing the valuables, Madoff showed that he may be a flight risk, prosecutors said.

“When the defendant's office desk was searched, investigators found approximately 100 signed checks totaling more than approximately $173 million, ready to be sent out,” two assistant U.S. attorneys, Marc Litt and Lisa Baroni, wrote in a letter to the judge. “The only thing that prevented the defendant from executing the plan to dissipate those assets was his arrest by the FBI on Dec. 11.”

Lawyers for Madoff have said he should not have his bail revoked but should instead remain under 24-hour house arrest at his luxury Manhattan apartment. Madoff has surrendered his passport, is wearing an electronic ankle bracelet and is under guard, so he does not represent a flight risk and should not be jailed, they said.